For a cryptocurrency that is still being debated if it’s really decentralized or not, XRP is the perfect love-hate dilemma among cryptocurrency enthusiasts. From one side, investors are loving how there’s a centralized company with well-studied plans behind a decentralized cryptocurrency, and on another side, traders are mocking the very nature of XRP and classifying it among “shitcoins”. In this article, we’re going to see why XRP still has hope for a strong return, and analyze its current price-action.
XRP Price remained in Consolidation for 4 years?
After the famous SEC lawsuit that hit Ripple company, many investors started dumping XRP in fear of another crypto failure. Prices of XRP were trading around USD 50 cents and fell to USD 17 cents.
But if we look at the history of XRP prices, we can notice that for an extended period of time (almost 4 years now), prices always averaged around USD 25 cents, with prices going away from that mean for a short-term period, only to go back to it (figure 1).
We can look at that USD 25 cents price as a strong consolidation area, and 80% of the time, XRP would go above that price (in case of any good news and strong market fundamentals).
On the contrary, if prices were above that price (red area in figure 1), prices are most likely returning to that consolidation area in case of a massive negative sentiment. Both red areas in figure 1 represent XRP’s worst fundamentals, the first being the pump-and-dump of the 2017 crypto crash, and the second being the SEC lawsuit.
One thing is certain so far: prices aren’t failing the USD 17 cents price mark, a price that represents a very strong support area, ever since July 2017.
XRP Price Prediction – What’s next for XRP
So far, with the recent massive rally that had to do with investors switching from traditional finance to a more decentralized market, XRP managed to gain momentum at the same time and cross the USD 30 cents mark.
If strong fundamentals remain in place, and the advancement in the lawsuit takes place soon while showing a positive resolution, momentum can still hit XRP and prices might reach an area between USD 37.5 cents and USD 40 cents in the short-term.
The whole Cryptocurrency market
In the past 7 days, the cryptocurrency market was mostly up thanks to that massive rally that happened a few ago. Also, Elon Musk now has the Bitcoin logo in his Twitter bio, giving better confidence in the overall market:
1- Bitcoin (BTC) : + 4.97 %
2- Ether (ETH) : + 7.89 %
3- Tether (USDT) : 0 %
4- Polkadot (DOT) : – 7.16 %
5- Ripple (XRP) : + 16.51 %
6- Cardano (ADA) : – 0.95 %
7- Chainlink (LINK) : – 4.12 %
8- Litecoin (LTC): – 5.36 %
9- Bitcoin Cash (BCH) : – 6.06 %
10- Binance Coin (BNB): + 7.35 %
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